PARIS – Blockbuster deals keep ramping up in the beauty space, with the latest being Henkel AG agreeing to buy premium hair care brand Olaplex in a $1.4 billion transaction.
The German multinational chemical and consumer goods company said Thursday that the offer price is $2.06 per share.
The cash transaction, which represents a premium of about 55 percent over Olaplex’s closing stock price Wednesday, was unanimously approved by Olaplex’s board and Advent International, the brand’s largest shareholder since 2019.
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Once the deal closes, possibly in the second half of 2026, Olaplex will cease being listed on the Nasdaq.
In early January, speculation swirled that Henkel had proposed a takeover offer for Olaplex.
“This acquisition marks another important milestone in Henkel’s purposeful growth agenda and further expands hair care as a core category within its Consumer Brands business,” Henkel wrote in a press release.
In a separate statement Olaplex said the transaction is expected to combine complementary strengths in the professional hair channel, unlock new avenues for innovation, confederate the brand’s North American direct-to-consumer and specialty retail presence with Henkel’s international reach, and create opportunities for innovation and growth.
“Today marks an exciting next chapter for Olaplex. From our roots in the professional community to becoming one of the most trusted science-led brands in hair treatment, our journey has always been fueled by innovation and a deep commitment to stylists and consumers,” said Amanda Baldwin, chief executive officer of Olaplex, in the statement. “This step is a testament to the momentum we’ve achieved in our transformation and the significant opportunities ahead for Olaplex to continue shaping the future of hair health and pursue long-term growth.
“I’m incredibly proud of what our team has accomplished and look forward to accelerating our product innovation, expanding our reach and continuing to deliver results for our pro partners and customers around the world as part of the Henkel platform,” she continued.
Premium hair care is an investor darling today — not least because of its growth. The category was worth an estimated $41.47 billion and is projected to reach $75.20 billion by 2033, representing a compound annual growth rate of 6.9 percent, according to Grand View Research.
In fiscal year 2025, Olaplex generated sales of $423 million, which were split between the U.S., its home market, and abroad. The New York-based brand also posted strong gross margin of 69.4 percent.
In a note, Jefferies said “growth remains weak, and the business is still mid-turnaround.”
Market-share losses also have contributed to Olaplex’s stock declining more than 90 percent since the group went public in September 2021 on the Nasdaq.
Olaplex products are in professional hair salons, specialty retail and e-commerce. The brand was founded in 2014.
The deal is part of a broader overarching strategy for Henkel.
“Henkel continues to look to deepen its exposure to Hair Care, reduce reliance on Home Care and build a Consumer Brands division that has been restructured over the past three years,” David Hayes, a Jefferies equity analyst, said in a research note. “We note that this strategic direction could extend to potentially larger hair care deals.”
Carsten Knobel, Henkel CEO, explained the takeover strategy, saying: “The planned acquisition of Olaplex is fully in line with Henkel’s strategy to expand its portfolio through compelling, value-adding M&A activities. This transaction allows us to expand our presence in premium hair care. The brand creates compelling opportunities for future growth and innovation.”
“Olaplex is a perfect strategic fit for our premium hair care business,” continued Wolfgang König, executive vice president responsible for Henkel’s Consumer Brands business. “Its strong scientific foundation, guided by professionals, combined with a robust presence across premium channels makes it highly complementary to our existing portfolio, and we see meaningful opportunities to accelerate innovation.”
Big deals — and talk thereof — keep the beauty space percolating. On Monday, the Estée Lauder Cos. and Puig confirmed they are in merger talks. If that’s transacted, the combined entity would be valued at more than $40 billion.
Advent also earlier this week said it had signed a definitive agreement to acquire a majority stake in Los Angeles-based body care brand Salt & Stone.